RBA - RB Global's stock hits 3-month low after customer loss

2023-11-10 12:36:56 ET

RB Global ( NYSE: RBA ) fell as much as 11% to a three-month low on Friday, a day after the vehicle-marketplace company said a business it acquired this year had lost a key customer.

The customer last month told IAA -- which RB Global ( RBA ) this year bought in a controversial deal -- that it planned to move assignment volume elsewhere. Assignment volume is the number of used car parts that are distributed to a buyer or seller, like an insurance company.

The customer made up about 4% of gross transaction value, 5% of lot volumes and 3% of consolidated revenue for IAA, an online marketplace for car parts and damaged vehicles. RB Global ( RBA ) said the move would affect revenues starting in the first quarter of 2024.

When asked by an analyst if the loss of the customer was a sign of more things to come, RB Global ( RBA ) CEO James Kessler said improving IAA’s business will take time and investment.

“Our main focus when we came into IAA and looked at their performance was really thinking about: how do you turn it around?” Kessler said during the call on Thursday . “What makes me feel really good is the progress we've already made, and we continue to make going into the current quarter.”

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